Chapter 4 Vocabulary Flashcards by Crista Chang

SCOR Model Steps

Plan 
Source
Make 
Deliver 
Enable 
Return

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According to APICS, this is a set of logically related tasks or activities performed to achieve a defined business outcome

Process

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A process that address the main value-added activities of an organization (what you’re doing that adds value to the customer)

Primary process

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Examples of primary processes

Providing a service
Educating customers
Manufacturing

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A process that performs necessary, albeit not value-added, activities. (Things we have to do)

Support processes

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Examples of support processes

Evaluating suppliers
Recruiting new workers
Developing a sales and operation plan

Ex/tuition billing, payroll

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A process that seeks to improve the performance of primary and support processes

Development Process

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Examples of Development process

Developing new products
Performing basic research
Training new workers

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People involved in primary process

Suppliers 
Purchasing 
Engineering 
Operations
Finance 
Marketing 
Customers

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The process of developing graphic representations of organizational relationships and/or activities that make up a business process

Mapping

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Identifies the specific activities that make up the informational, physical, and/or monetary flow of a process

Process Map

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Three rules for creating a process map

Identify the entity that will serve as the focal point
Identify clear boundaries and starting and ending points
Keep it simple

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Symbol for start or finish in a process map

Rectangle with round edges

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Step or activity in the process (on a process map) is represented by

Rectangle

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Decision point (requires a yes or no) symbol

Diamond

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Move activity (on a process map) is signaled by what

Arrows

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Example used in class with process maps

Subway

Kiosk like at Wawa or Sheetz

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A process map that graphically arranges the process steps so that the user can see who is responsible for each step. (Shows event there are trade offs)

Swim lane process map

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4 measures of process performance

Quality
Cost
Time
Flexibility

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3 types of quality

Performance
Conformance
Reliability

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What we are looking to get out of it

Performance quality

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Standards on how products should be built

Conformance quality

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If the battery life is supposed to last 24 hrs, did it do that? Refers to

Reliability

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Costs in process performance include

Labor
Material
Quality-related

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Two parts of time

Delivery speed and delivery reliability

How fast can we get it refers to

Delivery speed

How consistent are we w/ delivery refers to

Delivery reliability

3 types of flexibility

Mix Changeover Volume

Number of products you offer refers to

Mix flexibility

How quickly you can go from making one product to making another is

Changeover flexibility

How quickly we can up our production; 1 product to a million products

Volume flexibility

Example used in class of Process Performance and three things to remember

Basketball (effectiveness, efficiency, adaptability)

A measure of process performance; is a ratio of outputs to inputs; can be based on a single factor (one input) or multiple factors

Productivity

Formula for productivity

Outputs/Inputs

A productivity score that measures output levels relative to a single input

Single factor productivity

A productivity score that measures output levels relative to more than one input

Multi-factor productivity

Percent change in productivity formula

(New-Old)/Old * 100

A measure of process performance; the ratio of actual outputs to standard outputs; usually expressed in percentages

Efficiency

Efficiency equation

100%*(actual outputs/standard outputs)

An estimate of what should be produced given a certain level of resources

Standard output

An efficiency score of less than 100% suggests that

A process is not producing up to its potential

Time between when the customer places the order and when it actually gets to them; the total elapsed time needed to complete a business project

Cycle time (throughput time)

Looks at overall cycle time and how much value is added to the customer; percentage of total cycle time that is spent on activities that actually provide value

Percent value-added time

Example used to describe percent value added time

7 minutes out of the hour you spent at the DMV

Percent Value Added Time equation

100%*(Value-Adde Time/Cycle Time)

The process of identifying, understanding and adapting outstanding practices from within the same organization or from other businesses to help improve performance

Benchmarking

A way to compare results against something/someone else to see how you’re doing

Benchmarking

The comparison of an organization’s processes with those of competing organizations; comparing to something outside of your company

Competitive benchmarking

The comparison of an organization’s processes with those of noncompetitors that have been identified as superior processes

Process benchmarking

Comparing your numbers against what you have done historically

Process benchmarking

Six sigma is a business improvement methodology that focuses an organization on understanding and managing

Customer relations

Six sigma is a business improvement methodology that focuses an organization on aligning key business processes to

Achieve those customer requirements

Six sigma is a business improvement methodology that focuses an organization on utilizing rigorous data analysis to

Understand and ultimately minimize variation in those processes

Six sigma is a business improvement methodology that focuses an organization on driving

Rapid and sustainable improvement to business processes

Six Sigma People

``` Champion Master black belt Black belt Green belt Team members ```

A senior level executive who owns a Six Sigma project and has the authority and resources needed to carry it out

Champion

A full time Six Sigma expert who is responsible for Six Sigma Strategy, training, mentoring deployment and results

Master black belt

A fully trained six sigma expert with up to 160 hours of training who performs much of the technical analyses required of Six Sigma projects, usually on a full time basis

Black belt

An individual who has some basic training in Six Sigma methodologies and tools and is assigned to a project on a part time basis

Green belt

Individuals who are not trained in Six Sigma but are included on a Six Sigma project team due to their knowledge or direct interest in a process

Team members

A Six Sigma process that outlines the steps that should be followed to improve and existing business project

DMAIC (define, measure, analyze, improve, control)

A Six Sigma Process that outlines the steps needed to create completely new business processes or products

DMADV (Define, Measure, Analyze, Design, Verify)

Continuous Improvement Tools (5)

``` Root cause analysis Cause and effect diagram Five M’s Five Why’s Visual tools ```

5 types of visual tools

``` Check sheets Pareto charts Bar graphs Histograms Scatterplot ```

The philosophy that small, incremental improvements can add up to significant performance improvements over time

Continuous improvement

A process by which organizations brainstorm about possible causes of problems (effects) and then, through structures analyses and data gathering efforts, gradually narrow the focus to a few root causes

Root cause analysis

A graphical tool used to categorize the possible causes for a particular result

Cause and effect diagram (fishbone diagram)

The five main branches of a typical cause and effect diagram

Five Ms

What are the five Ms

``` Manpower Methods Materials Machines Measurements ```

People who do not have the right skills authority or responsibility

Manpower

Poor business practices; poor process, product, or service designs

Methods

Poor quality inputs

Materials

Equipment that is not capable of doing the job

Machines

Performance measurements that are not geared toward eliminating the problem

Measurements

Asking why a bunch of times refers to the

Five Whys

Records how frequently an event occurs

Check sheet

Bar chart that shows frequency counts from highest to lowest

Pareto charts

A graphical representation of the relationship between two variables

Scatter plot

A graphical representation that tracks changes in a key measure

Run chart

A graphical representation of data that places observations into specific categories

Bar graphs

A special form of bar chart that tracks the number of observations that fall within a certain interval

Histogram

A procedure that involves the fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements in such critical measures of performance as cost, quality, service and speed

Business process re-engineering (BPR)

A comprehensive model of the core management processes and individual process types that together define the domain of supply chain management

SCOR Model